• Thursday, Nov 21, 2019
  • Last Update : 09:54 pm

Summit to invest more in power generation

  • Published at 07:58 pm March 7th, 2019
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Summit Power has over 21 years of experience in the power sector. The company is the pioneer among Bangladeshi private sector power generation companies

The Summit Power Limited (SPL) has posted a 14% growth in revenue year-on-year in 2017-18 due to increase of production capacity.

Revenue from 2013 to June 2018 has increased by 90%, growing by 17.98% each year on an average and stood at Tk1,846 crore for the year ended 30 June 2018.

Summit Power has over 21 years of experience in the power sector. The company is the pioneer among Bangladeshi private sector power generation companies.

The Summit Group is the largest infrastructure conglomerate of Bangladesh, comprising of multiple business units ranging from power to shipping to communications. Summit power’s concerns including both Turbine and Reciprocating Engine Divisions currently have 1,941MW of installed capacity.

SPL, a subsidiary of Summit Group, is the first Bangladeshi Independent Power Producer (IPP) supplying power to the national grid. Today SPL owns and operates 15 power plants in different locations across the country having a total installed capacity of 976 MW.

This fast-growing company has set a mission to expand the company with a power generation capacity to the tune of a modest 20% of the total electricity requirement in Bangladesh. 

Recently, the company has installed two power plants in Kodda, Gazipur: 300MW heavy fuel oil (HFO) fired within nine months from the date of Letter of Intent and another is 149MW Dual Fuel (HFO/Gas) fired within 15 months from the date of signing of the Power Purchase Agreement (PPA).

Summit Power Chairman Muhammed Aziz Khan told the Dhaka Tribune: “Electricity is one of the most important parts of infrastructure, so I feel very proud to be associated with the power sector of Bangladesh.”

By 2030, the government wants to generate 40,000MW electricity. To reach this target, Bangladesh has to make additional investment of about $40 billion.

Aziz Khan also said: “Summit is working with the government and we would like to supply 20% of the country’s electricity. As a result, we wish to invest about $6 billion in the power sector of Bangladesh.

“We will strengthen our engagement in power generation in the future.”

The Summit Power disbursed a 30% cash dividend for the year 2017-18. The Company has also reported earnings per share (EPS) of Tk4.40, net asset value (NAV) per share of Tk.31.26 for the year ended on June 30, 2018.

Net profit of the Company has also increased over the years since 2013 on average by 17.29% each year and stood at Tk5,274 million for  the year ended 30 June 2018.

Total assets of the Company has also increased over the years since 2013 by 192% and on an average by 38.40% each year and stood at Tk64,346 million for the year ended 30 June 2018.

The SPL, presently an “A” category company, was listed the stock exchanges in 2005. The company's sponsor-directors hold 63.18% shares, institutes 19.73%, foreign shareholders 3.65% and general shareholders 13.44% as of Wednesday. The company's share price closed at Tk42.30 each yesterday on the Dhaka Stock Exchange (DSE).

Summit Power was incorporated in Bangladesh on March 30, 1997 as a Private Limited Company. On June 7, 2004, the Company was converted into Public Limited Company under the Companies Act, 1994.